In Sriperumbudur and Oragadam, Chennai's automobile belt and also called the Detroit of India, the slowdown is visible. He added that they have closed a few sub-contracts that they had outsourced to other companies. Gajanan Bandu Khandare, President of Videocon Group Employees Union, says that 6,000 workers at the company still have their jobs, but they have not been paid for the past seven months. Close. The saga of Adhunik Metaliks and Zion Steel is not heartening either. Business Models for News Now what? Understandably, these creditors often have the final say in all things vital, be it choosing the insolvency professional, accepting or rejecting the resolution plan or deciding the fate of operational creditors who are typically vendors and employees. Videocon Industries went under the IBC in June 2018 but has not seen a resolution. ... We started tracking small business loan frauds fairly early on and have been able to tip off the Department of Justice about these schemes starting last May. The country's largest car maker Maruti Suzuki cut production for the fifth consecutive month in June, according to a regulatory filing. When considering collateral damage in light of the existing legal framework and in the absence of new norms, maximum care should be given to minimize the amount of collateral damages while upholding the tradition of International Humanitarian Law. SHARE THIS ARTICLE. The other segment facing heat is dealers. However, the biggest fear is the loss of business to the town which local business owners warn could lead to closures and job losses. Sharma may not be entirely wrong. Apart from the original equipment manufacturers (OEMs) and component industries, the on-going slump is also affecting allied sectors like logistics, dealers and contract labour suppliers. "Both companies are not operating for 12-16 months since Liberty House's failed attempt to buy them. Businesses in Hong Kong fear collateral damage from security law. In a recent media briefing, Injeti Srinivas, Secretary, Ministry of Corporate Affairs, said that there is a need for an alternative mechanism and not all default cases should not be referred to NCLT. Collateral Damage for Small Business Credit Scott Shane. For the past 26 years, K. Munisamy, 50, has been following a routine. "I used to earn enough (Rs 22,000 a month) to meet the expenses, but that will change," he says. Today, the phrase has real-world implications outside of physical combat. According to industry experts, an average car with internal combustion engine has 30,000 parts while an EV has about 300. "We have not experienced any termination or layoffs for permanent workers in the auto sector in Tamil Nadu till now. The logistics sector is facing a business loss of 25-35 per cent. Mahesh Sharma (42) had worked for Moser Baer India for 17 years and drew a monthly salary of around Rs 27,000 when the company was dragged into insolvency proceedings in November 2017. euphemism - an inoffensive or indirect expression that is substituted for one that is considered offensive or too harsh. However, there is no overtime work now," he says. As of now, it has 1,100 employees on board (800 permanent and 300 temporary), and their fate hangs in the balance. How Uncleared Margin Rules Will Revolutionize the FXPB Business Model Kevin Wilson Director, Futures, Clearing and Collateral Origination Christopher Perkins Managing Director, Global Head of OTC Clearing and FXPB Chelsea Lo Vice President, Futures, Clearing and Collateral Product Management He adds that the company has not downsized yet but, like many of its peers, is looking at it seriously. "The auto industry is highly interrelated. Collateral Damage. The industry will pick up and we will have an upward swing. fatal accident, casualty - … But given the crisis, workers are scared," says C. Thiruvettai, District General Secretary of the Centre of Indian Trade Union (CITU). The company has reduced or stopped contracts with a few smaller companies that undertake plating and powder coating work for them. First there was the pandemic. That shows the business will again pick up," he says. In a departure from the past, the IBC has tilted in favour of financial creditors who are mostly bankers. He clocks in eight hours before going home. The workers opposed it vehemently and got the lockout revoked, hoping that operations would start soon. In a week of peaceful protest against police violence, politically motivated vandalism and arson, and opportunistic theft, Show-Anderson’s academy, like many small businesses across the state, has become the collateral damage. If those things didn’t apply anymore, then it would be reasonable for the US to say that there’s no point having special trade status,” says … Allied businesses such as contract labour providers are reporting fall in business. Even before that, all was not hunky-dory as the management declared a lockout at the Greater Noida plant. This will include reducing manpower, decreasing the number of working days, and so on." ... We started tracking small business loan frauds fairly early on and have been able to tip off the Department of Justice about these schemes starting last May. Collateral Damage? Enter the COVID-19 pandemic, and she found herself on a video chat with a client while her 3-year-old sat on her lap. As a result, both were ordered to be liquidated by the Cuttack Bench of the NCLT on July 7. Collateral damage definition is - injury inflicted on something other than an intended target; specifically : civilian casualties of a military operation. Not only have their revenues and margins shrunk, storing unsold inventories has become a hurdle. The world of business is especially fond of the concept of collateral damage to describe the unintentional damage left in the wake of a singular action. Alok Industries, which was acquired by a combine of Mukesh Ambani-led Reliance Industries (RIL) and JM Financial Asset Reconstruction Company (ARC) in March 2019, has over 10,000 employees who face an uncertain future. Plus, the time frame is too less for the transition," says a Chennai-based component maker. Some businesses managed to find new promoters and they continue to operate, but others failed and were liquidated. "Unfortunately, the entire industry is reeling under negative growth, so everybody in the component industry has a varied level of stress to go through," he says. We are now struggling to manage day-to-day operations. Their employer, a valve maker in Chennai's Ambattur Industrial Estate, has given notice to its employees as it is shutting operations a couple of months down the line. SIAM data shows that the passenger vehicle production during June stood at 267,600 units, the lowest in 71 months. Hyundai Motors is observing a no-production day once a week in one of its plants in Chennai, say industry insiders. It slashed total vehicle production by 15.6 per cent last month to 1,11,917 units compared to 1,32,616 units in the year-ago month while the mini segment vehicles, including models such as Alto, by 48.2 per cent to 15,087 units last month as against 29,131 units in the year-ago period. He did not wish to be named. The UK-based Liberty House Group acquired both during the resolution process but failed to pay within the stipulated time frame. "When business reduces, companies can't cut the labour force then and there. The Philippines’ potential “collateral damage” are the fourth highest in the region, after China’s $19.777 billion, Singapore’s $2.926 billion and Japan’s $2.541 billion. "Earlier, my clients used to provide accommodation, travel and food free to daily wage labourers. India's top 10 auto companies have slowed production. "The slowdown is having a domino effect. The effects can be felt far and wide as the auto industry forms 7.1 per cent of India's GDP and employs more than 32 million people directly and indirectly, according to Ministry of Heavy Industries and Public Enterprises 2017/18 report. Binani, too, is trying to find a buyer for the companies. The Managing Director of a Chennai-based company (speaking on condition of anonymity) that makes and supplies die castings for companies such as Maruti Suzuki, Lucas TVS and Brake India, says, "Our revenues have dropped over 30 per cent this year compared to the same period last year. Peter Strong: Australia Post has lost its way, and small businesses are the collateral damage. The member representing Ethiope federal constituency, Hon Ben Igbakpa yesterday described the attack on his business mall in Sapele local government area of Delta State as a collateral damage It has affected all stakeholders of the industry, and component manufacturers in particular," he says. The same story is being played out at many levels, in different parts of the country, as creditors push debt-ridden companies to the National Company Law Tribunal (NCLT) and resolutions are sought under the IBC. His colleague, Kumar, 35, is in a similar situation. ‘Collateral damage’: Only a third of border business bailout used. Employees have more to be concerned about than just the poor auto sales. It can happen to anyone, by innocent association, or by being in the wrong party or company. When the sector was thriving, labourers worked even on holidays and got double wages and overtime benefits. Collateral damage: The effect of the pandemic on working moms. Before liquidation, the companies had a combined workforce of 2,000 (on their payrolls and under contracts), says Sumeet Binani, who is now the liquidator. While the bigger companies are able to cushion the loss as they have varied products, after-sales market, and more customers, the small- and medium-scale players are in a tough spot. That is why it has requested restraint in taking debt defaulters to the NCLT. As insolvency is a rigorous process, only cases which involve large outstanding should be resolved through the IBC. An e-mail query sent to Tata Steel, the new promoters of Bhushan Steel, did not elicit any response at the time of going to press. Insolvency proceedings were initiated against the company in August 2017, and it was liquidated a year later. "Compared to last year, there is a big drop in the orders from OEMs this year," says S. Thyagarajan, Director, Mudhra Fine Blanc, which manufactures parts for brakes, wipers and engines among others. "Our trips have come down severely and there is a revenue loss of 40 per cent. The slump in India's automobile sector is taking a toll on allied industries, affecting jobs and incomes. Irrespective of resolutions, companies going through the insolvency process are seeing large number of direct and indirect job losses. The industry is going through a prolonged slowdown, the worst in nearly two decades, says SIAM President Rajan Wadhera. "We used to store inventories for a month. The timing is, of course, horrible. Understandably, both cases witnessed huge job losses. The collateral damage of a tech backlash Business Models for News The very social platforms that are being (rightly) targeted for their role in fanning the flames of an insurrection are the same ones that drive traffic to news sites. The logistics sector is facing a business loss of 25-35 per cent. Collateral Damage Irrespective of resolutions, companies going through the insolvency process are seeing large number of direct and indirect job losses Dipak Mondal | Print Edition: December 15, 2019 To exist today, newsrooms have little to no choice: social platforms are a necessary evil. Other stakeholders have been affected too. is a Chennai-based freelance journalist, The slump in India's automobile sector is taking a toll on allied industries, affecting jobs and incomes, K. Munisamy, 50, (left) and Kumar, 35, work at a milling unit of an auto parts maker in Chennai. While this increase has had a visible impact on India’s internet population, there’s been some unexpected collateral damage on the side. Companies that make engine parts were affected financially by the BS-4 to BS-6 transition as well. As part of the liquidation process, the factory land, one of the major assets, has been acquired by True Value Nirman, an Ahmedabad-based real estate company. Billionaire investor Warren Buffett urges Congress to approve aid to small businesses that have “become collateral damage” in the necessary fight to contain the COVID-19 pandemic. "During good times, I used to work over time and earn more," says the father of two, who supports a six-member family, which includes his parents. collateral damage - (euphemism) inadvertent casualties and destruction inflicted on civilians in the course of military operations. Take, for example, the case of IVRCL. Of course, people were not working during the insolvency resolution period, but they were hoping that a buyer would ultimately turn up and get the business going. S. Gauri, an employee at a major OEM, says the number of working days has reduced. Business Today could not independently verify this claim. The advantage of secured loans is that they often have lower interest rates than unsecured loans. Even though the NCLT and other courts had, on occasions, gone out of their way to protect workers' interest, Sharma of Moser Baer workers' union does not agree. Sharma now runs a small electrical appliance shop in a dusty bylane of Dadri. I am the only earning member in my family (he earns about Rs 17,000 a month) and I have to search for a job now," he says. Collateral Damage: Wirecard Fallout ... “Despite the most difficult framework conditions, the sale of the Wirecard core business to the Banco Santander Group was completed today. But that collateral damage is someone’s son, or daughter, or sibling, or parent. Collateral Damage Irrespective of resolutions, companies going through the insolvency process are seeing large number of direct and indirect job losses Dipak Mondal | … "So, many companies, especially those that makes engine and transmission parts, or are into forging and casting, may close down, unless they change and start making parts for EVs, which will need heavy investment. COVID-19 has sparked a surge in cyber threats. "They (resolution professionals) only have bankers' interest in mind," he says. Large corporations should not become collateral damage in farm protests It is also unfortunate that farmers have dragged a company that has … February 10, 2021. Collateral is an asset or piece of property that a borrower offers to a lender as security for a loan. Most auto component makers have recorded fewer orders from OEMs April onwards, according to industry watchers. He says he will never get another position in Noida or nearby areas because of his past affiliation to labour unions. "India is importing around Rs 1,800 crore worth of EV components from China alone," Kumar adds. The crisis has hit almost all automobile production hubs in the country, and companies are resorting to drastic measures to stay afloat. If the borrower fails to pay the loan, the lender has the right to take the asset used as collateral. Enter the COVID-19 pandemic, and she found herself on a video chat with a client while her 3-year-old sat on her lap. Every vehicle produced, generates secondary and tertiary employment," the ministry report states. At least seven out of the top 10 passenger vehicle makers, including Maruti Suzuki India, Tata Motors, Mahindra & Mahindra and Honda Cars India, had production shutdowns in May and June. Sharma, who was the President of Moser Baer Karamchari Union, says that workers were ready to give up a part of their salaries for a few months to help revive the company.